Tax Services
Tax Return Preparation Tax Services Pricing Non-Filer Tips Tax Deadlines Do My Own Taxes Tax Help Center Tax Glossary
Crypto Services
Crypto Gain Calculations Crypto Services Pricing
IRS Resolution
Tax Shield Guard Dog Pricing IRS Monitoring Report IRS Notices Help with Audit
1099-DA
1099-DA Safe Harbor
About
Clinton Donnelly About Us Blog Contact
Contact Us

What is IRS Letter 6489?

 

IRS Letter 6489 is issued when the IRS identifies discrepancies in Schedule K-1 reporting from partnerships, S-Corps, or trusts. It means your reported income or deductions don’t match what the entity filed.

White envelope stamped in red with “IRS Letter 6489 – Important: IRS Notice Enclosed.” Represents an official IRS notification about payment or credit reconciliation.

What is IRS Letter 6489?

White envelope stamped in red with “IRS Letter 6489 – Important: IRS Notice Enclosed.” Represents an official IRS notification about payment or credit reconciliation.

IRS Letter 6489 is issued when the IRS identifies discrepancies in Schedule K-1 reporting from partnerships, S-Corps, or trusts. It means your reported income or deductions don’t match what the entity filed.

Get Help!

Why did I get IRS Letter 6489?

If you're invested in a crypto hedge fund, DAO, or DeFi LP structure that issues a K-1, this letter could flag mismatched data, especially if you omitted it or filed it late.

What to do next:

Two overlapping K-1 forms with a teal magnifying glass between them, representing comparison of the original K-1 with filed tax data.

1: Obtain a copy of the original K-1 and compare it to your tax filing

 

An open folder with a W-2 form, a checklist, and a profile card with a checkmark emerging from it, symbolizing submitting proof like income forms and dependents to the IRS.

2: Amend your return if needed to reflect the correct amounts

Document with a dollar sign beside a phone receiver, symbolizing contacting the payer to stop backup tax withholding after corrections are made.

3: Respond within the stated timeframe to avoid penalties

When to Seek Professional Help

CryptoTaxAudit specializes in reconciling K-1 forms tied to crypto funds, DAOs, and structured investments, helping you avoid audits and penalties.

Get Help!

Additional Resources

Voluntary compliance letters